Friday, March 17, 2017

NGCP, SN Aboitiz seek ERC nod on new AS procurement

The National Grid Corp. of the
Philippines (NGCP) and SN Aboitiz Power-Benguet Inc. (SNAP-BI) are asking the
Energy Regulatory Commission (ERC) to grant them a provisional authority to
implement their ancillary services procurement program (ASPA).

In the 12-page application, NGCP
stressed the importance of procuring the contracted ancillary services capacity
of SNAP-BI to maintain the reliability of the operation of the transmission
system and electricity supply in the Luzon grid.

Ancillary services (AS) are
necessary to support the transmission of capacity and energy from resources to
loads while maintaining reliable operation of the transmission system and
consequently, in the reliability of the electricity supply in the Luzon,
Visayas and Mindanao grids.

There is already an existing Aspa
between the two firms, but they agreed to execute a new Aspa for a period of
another five years.

“Based on the current levels of
available contracted AS in the Luzon grid, the contracted AS have not yet met
the required levels…with this Aspa, the Luzon grid is assured of AS until
2022,” they said.

NGCP is mandated to procure the
required AS. However, the ERC must first approve the contract before the it
could be implemented. SNAP-BI, it said, must continue to provide the current
contracted capacity ancillary services beyond the 2013 ASPA to maintain the
reliability of the power grid.

“Also, as the demand for power in
Luzon increases, the requirement of the system to ensure stability, reliability
and security, likewise, increases. Ensuring the integrity of the system is
essential to protect the interests of the public. The absence of system
reliability and stability will certainly discourage investments and growth,”
they said in their application.